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• Half Title
• Title Page
• Copyright Page
• Dedication
• Pearson’s Commitment to Diversity, Equity, and Inclusion
• Contents in Brief
• Contents in Detail
• Additional Materials
• Preface
• About the Authors
• Part One: Introduction
  • Chapter 1. Why Study Financial Markets and Institutions?
    • Preview
    • Why Study Financial Markets?
      • Debt Markets and Interest Rates
      • The Stock Market
      • The Foreign Exchange Market
    • Why Study Financial Institutions?
      • Structure of the Financial System
      • Financial Crises
      • Central Banks and the Conduct of Monetary Policy
      • Mini-Case: Are Bitcoin or Other Cryptocurrencies Money?
      • The International Financial System
      • Banks and Other Financial Institutions
      • Financial Innovation
      • Managing Risk in Financial Institutions
    • Applied Managerial Perspective
    • How We Will Study Financial Markets and Institutions
      • Exploring the Web
      • Collecting and Graphing Data
    • Web Exercise
    • Concluding Remarks
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problem
    • Web Exercises
  • Chapter 2. Overview of the Financial System
    • Preview
    • Function of Financial Markets
    • Structure of Financial Markets
      • Debt and Equity Markets
      • Primary and Secondary Markets
      • Exchanges and Over-the-Counter Markets
      • Money and Capital Markets
    • Internationalization of Financial Markets
      • International Bond Market, Eurobonds, and Eurocurrencies
      • Global: Are U.S. Capital Markets Losing Their Edge?
      • World Stock Markets
    • Function of Financial Intermediaries: Indirect Finance
      • Following the Financial News: Foreign Stock Market Indexes
      • Global: The Importance of Financial Intermediaries Relative to Securities Markets: An International
      • Transaction Costs
      • Risk Sharing
      • Asymmetric Information: Adverse Selection and Moral Hazard
      • Economies of Scope and Conflicts of Interest
    • Types of Financial Intermediaries
      • Depository Institutions
      • Contractual Savings Institutions
      • Investment Intermediaries
    • Regulation of the Financial System
      • Increasing Information Available to Investors
      • Ensuring the Soundness of Financial Intermediaries
      • Financial Regulation Abroad
    • Summary
    • Key Terms
    • Questions
    • Web Exercises
• Part Two: Fundamentals of Financial Markets
  • Chapter 3. What Do Interest Rates Mean, and What Is Their Role in Valuation?
    • Preview
    • Measuring Interest Rates
      • Present Value
      • Four Types of Credit Market Instruments
      • Yield to Maturity
      • Global: Negative Interest Rates? Japan First, Then the United States, Then Europe
    • The Distinction Between Real and Nominal Interest Rates
      • Mini-Case: Seeing the Difference Between Real and Nominal in Practice: Australian eTIBs
    • The Distinction Between Interest Rates and Returns
      • Maturity and the Volatility of Bond Returns: Interest-Rate Risk
      • Reinvestment Risk
      • Summary
      • The Practicing Manager: Calculating Duration to Measure Interest-Rate Risk
      • Calculating Duration
      • Duration and Interest-Rate Risk
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercise
  • Chapter 4. Why Do Interest Rates Change?
    • Preview
    • Determinants of Asset Demand
      • Wealth
      • Expected Returns
      • Risk
      • Liquidity
      • Theory of Portfolio Choice
    • Supply and Demand in the Bond Market
      • Demand Curve
      • Supply Curve
      • Market Equilibrium
      • Supply-and-Demand Analysis
    • Changes in Equilibrium Interest Rates
      • Shifts in the Demand for Bonds
      • Shifts in the Supply of Bonds
      • Case: Changes in the Interest Rate Due to Expected Inflation: The Fisher Effect
      • Case: Changes in the Interest Rate Due to a Business Cycle Expansion
      • Case: Explaining the Low Interest Rates in Europe, Japan, and the United States Before 2022
      • The Practicing Manager: Profiting from Interest-Rate Forecasts
      • Following the Financial News: Forecasting Interest Rates
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercises
    • Web Appendices
    • Chapter 4 Appendix 1: Models of Asset Pricing
    • Chapter 4 Appendix 2: Applying the Asset Market Approach to a Commodity Market: The Case of Gold
    • Chapter 4 Appendix 3: Loanable Funds Framework
    • Chapter 4 Appendix 4: Supply and Demand in the Market for Money: The Liquidity Preference Framework
  • Chapter 5. How Do Risk and Term Structure Affect Interest Rates?
    • Preview
    • Risk Structure of Interest Rates
      • Default Risk
      • Liquidity
      • Case: The Coronavirus Pandemic and the Baa–Treasury Spread
      • Income Tax Considerations
      • Summary
      • Case: Effects of the Trump Tax Cuts on Bond Interest Rates
    • Term Structure of Interest Rates
      • Following the Financial News: Yield Curves
      • Expectations Theory
      • Market Segmentation Theory
      • Liquidity Premium Theory
      • Evidence on the Term Structure
      • Mini-Case: The Yield Curve as a Forecasting Tool for Inflation and the Business Cycle
      • Summary
      • Case: Interpreting Yield Curves, 1980–2022
      • The Practicing Manager: Using the Term Structure to Forecast Interest Rates
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercises
  • Chapter 6. Are Financial Markets Efficient?
    • Preview
    • The Efficient Market Hypothesis
      • Rationale Behind the Hypothesis
    • Evidence on the Efficient Market Hypothesis
      • Evidence in Favor of Market Efficiency
      • Mini-Case: An Exception That Proves the Rule: Raj Rajaratnam and Galleon
      • Case: Should Foreign Exchange Rates Follow a Random Walk?
      • Evidence Against Market Efficiency
      • Overview of the Evidence on the Efficient Market Hypothesis
      • The Practicing Manager: Practical Guide to Investing in the Stock Market
      • How Valuable Are Published Reports by Investment Advisers?
      • Mini-Case: Should You Hire an Ape as Your Investment Adviser?
      • Should You Be Skeptical of Hot Tips?
      • Do Stock Prices Always Rise When There Is Good News?
      • Efficient Markets Prescription for the Investor
    • Why the Efficient Market Hypothesis Does Not Imply That Financial Markets Are Efficient
      • Case: What Do Stock Market Crashes Tell Us About the Efficient Market Hypothesis?
    • Behavioral Finance
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercise
• Part Three: Fundamentals of Financial Institutions
  • Chapter 7. Why Do Financial Institutions Exist?
    • Preview
    • Basic Facts About Financial Structure Throughout the World
    • Transaction Costs
      • How Transaction Costs Influence Financial Structure
      • How Financial Intermediaries Reduce Transaction Costs
    • Asymmetric Information: Adverse Selection and Moral Hazard
    • The Lemons Problem: How Adverse Selection Influences Financial Structure
      • Lemons in the Stock and Bond Markets
      • Tools to Help Solve Adverse Selection Problems
      • Mini-Case: The Enron Implosion
    • How Moral Hazard Affects the Choice Between Debt and Equity Contracts
      • Moral Hazard in Equity Contracts: The Principal–Agent Problem
      • Tools to Help Solve the Principal–Agent Problem
    • How Moral Hazard Influences Financial Structure in Debt Markets
      • Tools to Help Solve Moral Hazard in Debt Contracts
      • Summary
      • Case: Financial Development and Economic Growth
      • Mini-Case: The Tyranny of Collateral
      • Case: Is China a Counter-Example to the Importance of Financial Development?
    • Conflicts of Interest
      • What Are Conflicts of Interest, and Why Do We Care?
      • Why Do Conflicts of Interest Arise?
      • Conflicts of Interest: The Demise of Arthur Andersen
      • Conflicts of Interest: Credit-Rating Agencies and the 2007–2009 Financial Crisis
      • What Has Been Done to Remedy Conflicts of Interest?
      • Mini-Case: Has Sarbanes-Oxley Led to a Decline in U.S. Capital Markets?
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercises
  • Chapter 8. Why Do Financial Crises Occur, and Why Are They So Damaging to the Economy?
    • Preview
    • What Is a Financial Crisis?
      • Agency Theory and the Definition of a Financial Crisis
    • Dynamics of Financial Crises
      • Stage One: Initial Phase
      • Stage Two: Banking Crisis
      • Stage Three: Debt Deflation
      • Case: The Mother of All Financial Crises: The Great Depression
      • Stock Market Crash
      • Bank Panics
      • Continuing Decline in Stock Prices
      • Debt Deflation
      • International Dimensions
      • Case: The Global Financial Crisis of 2007–2009
      • Causes of the 2007–2009 Financial Crisis
      • Mini-Case: Collateralized Debt Obligations (CDOs)
      • Effects of the 2007–2009 Financial Crisis
      • Inside the Fed: Was the Fed to Blame for the Housing Price Bubble?
      • Global: The European Sovereign Debt Crisis
      • Height of the 2007–2009 Financial Crisis
      • Case: Could Covid Have Led to a Financial Crisis?
    • Summary
    • Key Terms
    • Questions
    • Web Exercise
    • Web References
• Part Four: Central Banking and the Conduct of Monetary Policy
  • Chapter 9. Central Banks
    • Preview
    • Origins of the Central Banking System
    • Variations in the Functions and Structures of Central Banks
      • Global: Who Should Own Central Banks?
      • The European Central Bank, the Euro System, and the European System of Central Banks
      • Decision-Making Bodies of the ECB
      • Global: The Importance of the Bundesbank Within the ECB
      • How Monetary Policy Is Conducted Within the ECB
      • Global: Are Non-Euro Central Banks Constrained by Membership of the EU?
      • The Federal Reserve System
      • Difference Between the ECB and the Fed
      • The Bank of England
      • Global: Brexit and the BoE
    • Structure of Central Banks of Larger Economies
      • The Bank of Canada
      • The Bank of Japan
      • The People’s Bank of China
    • Structure and Independence of Central Banks of Emerging Market Economies
    • Central Banks Independence
      • The Case for Independence
      • The Case Against Independence
      • The Trend Toward Greater Independence
    • Summary
    • Key Terms
    • Questions and Problems
    • Web Exercises
  • Chapter 10. Conduct of Monetary Policy
    • Preview
    • How Fed Actions Affect Reserves in the Banking System
      • Open Market Operations
      • Discount Lending
    • The Market for Reserves and the Federal Funds Rate
      • Demand and Supply in the Market for Reserves
      • How Changes in the Tools of Monetary Policy Affect the Federal Funds Rate
      • Case: How the Federal Reserve’s Operating Procedures Limit Fluctuations in the Federal Funds Rate
    • Conventional Monetary Policy Tools
      • Open Market Operations
      • Inside the Fed: A Day at the Trading Desk
      • Discount Policy and the Lender of Last Resort
      • Reserve Requirements
      • Interest on Excess Reserves
    • Nonconventional Monetary Policy Tools and Quantitative Easing
      • Liquidity Provision
      • Inside the Fed: Fed Lending Facilities During the Global Financial and Covid Crises
      • Large-Scale Asset Purchases
      • Quantitative Easing Versus Credit Easing
      • Forward Guidance
      • Negative Interest Rates on Banks’ Deposits
    • Monetary Policy Tools of the European Central Bank
      • Open Market Operations
      • Lending to Banks
      • Interest on Excess Reserves
      • Reserve Requirements
    • The Price Stability Goal and the Nominal Anchor
      • The Role of a Nominal Anchor
      • The Time-Inconsistency Problem
    • Other Goals of Monetary Policy
      • High Employment and Output Stability
      • Economic Growth
      • Stability of Financial Markets
      • Interest-Rate Stability
      • Stability in Foreign Exchange Markets
    • Should Price Stability Be the Primary Goal of Monetary Policy?
      • Hierarchical Versus Dual Mandates
      • Price Stability as the Primary, Long-Run Goal of Monetary Policy
    • Inflation Targeting
      • Advantages of Inflation Targeting
      • Inside the Fed: Ben Bernanke and the Federal Reserve’s Adoption of Inflation Targeting
      • Inside the Fed: The Fed’s New Monetary Policy Strategy: Average Inflation Targeting
      • Disadvantages of Inflation Targeting
    • Should Central Banks Respond to Asset-Price Bubbles? Lessons from the Global Financial Crisis
      • Two Types of Asset-Price Bubbles
      • The Debate over Whether Central Banks Should Try to Pop Bubbles
      • The Practicing Manager: Using a Fed Watcher
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercises
• Part Five: Financial Markets
  • Chapter 11. The Money Markets
    • Preview
    • The Money Markets Defined
      • Why Do We Need the Money Markets?
      • Money Market Cost Advantages
    • The Purpose of the Money Markets
      • Mini-Case: Covid and Prime Money Market Fund Withdrawals
    • Who Participates in the Money Markets?
      • U.S. Treasury Department
      • Federal Reserve System
      • Commercial Banks
      • Businesses
      • Investment and Securities Firms
      • Individuals
    • Money Market Instruments
      • Treasury Bills
      • Case: Discounting the Price of Treasury Securities to Pay the Interest
      • Mini-Case: Treasury Bill Auctions Go Haywire
      • Federal Funds
      • Repurchase Agreements
      • Negotiable Certificates of Deposit
      • Commercial Paper
      • Banker’s Acceptances
      • Eurodollars
      • Global: Ironic Birth of the Eurodollar Market
    • Comparing Money Market Securities
      • Interest Rates
      • Liquidity
      • How Money Market Securities Are Valued
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercises
  • Chapter 12. The Bond Market
    • Preview
    • Purpose of the Capital Market
    • Capital Market Participants
    • Capital Market Trading
    • Types of Bonds
    • Treasury Notes and Bonds
      • Treasury Bond Interest Rates
      • Treasury Inflation-Protected Securities (TIPS)
      • Treasury STRIPS
      • Agency Bonds
      • Case: The 2007–2009 Financial Crisis and the Bailout of Fannie Mae and Freddie Mac
    • Municipal Bonds
      • Risk in the Municipal Bond Market
    • Corporate Bonds
      • Characteristics of Corporate Bonds
      • Types of Corporate Bonds
    • Financial Guarantees for Bonds
    • Oversight of the Bond Markets
    • Current Yield Calculation
      • Current Yield
    • Finding the Value of Coupon Bonds
      • Finding the Price of Semiannual Bonds
    • Investing in Bonds
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
  • Chapter 13. The Stock Market
    • Preview
    • Investing in Stocks
      • Common Stock Versus Preferred Stock
      • How Stocks Are Sold
    • Computing the Price of Common Stock
      • The One-Period Valuation Model
      • The Generalized Dividend Valuation Model
      • The Gordon Growth Model
      • Price Earnings Valuation Method
    • How the Market Sets Security Prices
    • Errors in Valuation
      • Problems with Estimating Growth
      • Problems with Estimating Risk
      • Problems with Forecasting Dividends
      • Mini-Case: Covid Impact on Stock Markets
    • Stock Market Indexes
      • Mini-Case: History of the Dow Jones Industrial Average
    • Buying Foreign Stocks
    • Regulation of the Stock Market
      • The Securities and Exchange Commission
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercise
  • Chapter 14. The Mortgage Markets
    • Preview
    • What Are Mortgages?
    • Characteristics of the Residential Mortgage
      • Mortgage Interest Rates
      • Case: The Discount Point Decision
      • Loan Terms
      • Mortgage Loan Amortization
    • Types of Mortgage Loans
      • Insured and Conventional Mortgages
      • Fixed- and Adjustable-Rate Mortgages
      • Other Types of Mortgages
    • Mortgage-Lending Institutions
    • Loan Servicing
      • E-Finance: Borrowers Shop the Web for Mortgages
    • Secondary Mortgage Market
    • Securitization of Mortgages
      • What Is a Mortgage-Backed Security?
      • Types of Pass-Through Securities
      • Subprime Mortgages and CDOs
      • The Real Estate Bubble
      • Mini-Case: Has Covid Led to a Housing Price Bubble?
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
  • Chapter 15. The Foreign Exchange Market
    • Preview
    • Foreign Exchange Market
      • What Are Foreign Exchange Rates?
      • Why Are Exchange Rates Important?
      • Following the Financial News: Foreign Exchange Rates
      • How Is Foreign Exchange Traded?
    • Exchange Rates in the Long Run
      • Law of One Price
      • Theory of Purchasing Power Parity
      • Why the Theory of Purchasing Power Parity Cannot Fully Explain Exchange Rates
      • Factors That Affect Exchange Rates in the Long Run
    • Exchange Rates in the Short Run: A Supply and Demand Analysis
      • Supply Curve for Domestic Assets
      • Demand Curve for Domestic Assets
      • Equilibrium in the Foreign Exchange Market
    • Explaining Changes in Exchange Rates
      • Shifts in the Demand for Domestic Assets
      • Recap: Factors That Change the Exchange Rate
      • Case: Effect of Changes in Interest Rates on the Equilibrium Exchange Rate
      • Case: Brexit and the British Pound
      • The Practicing Manager: Profiting from Foreign Exchange Forecasts
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercises
  • Chapter 15. Appendix: The Interest Parity Condition
    • Comparing Expected Returns on Domestic and Foreign Assets
    • Interest Parity Condition
  • Chapter 16. The International Financial System
    • Preview
    • Intervention in the Foreign Exchange Market
      • Foreign Exchange Intervention and Reserves in the Banking System
      • Global: Variation in Central Banks’ Activism and Method of Intervention on Foreign Exchange Market
      • Unsterilized Intervention
      • Sterilized Intervention
    • Balance of Payments
      • Global: Rising Current Account Deficits in the EU
    • Exchange Rate Regimes in the International Financial System
      • Fixed Exchange Rate Regimes
      • How a Fixed Exchange Rate Regime Works
      • The Policy Trilemma
      • Monetary Unions
      • Global: Will the Euro Survive?
      • Currency Boards and Dollarization
      • Speculative Attacks
      • Global: Argentina’s Currency Board
      • Managed Float
      • Global: Dollarization
      • Case: The Foreign Exchange Crisis of September 1992
      • The Practicing Manager: Profiting from a Foreign Exchange Crisis
      • Case: How Did China Accumulate Over $3 Trillion of International Reserves?
    • Capital Controls
      • Controls on Capital Outflows
      • Controls on Capital Inflows
    • The Role of the IMF
      • Should the IMF Be an International Lender of Last Resort?
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercise
• Part Six: The Financial Institutions Industry
  • Chapter 17. Banking and the Management of Financial Institutions
    • Preview
    • The Bank Balance Sheet
      • Liabilities
      • Assets
    • Basic Banking
    • General Principles of Bank Management
      • Liquidity Management and the Role of Reserves
      • Asset Management
      • Liability Management
      • Capital Adequacy Management
      • The Practicing Manager: Strategies for Managing Bank Capital
      • Case: How a Capital Crunch Caused a Credit Crunch During the Global Financial Crisis
    • Off-Balance-Sheet Activities
      • Loan Sales
      • Generation of Fee Income
      • Trading Activities and Risk Management Techniques
      • Conflicts of Interest: Barings, Daiwa, Sumitomo, Société Générale, and JPMorgan Chase: Rogue Tra
    • Measuring Bank Performance
      • Bank’s Income Statement
      • Measures of Bank Performance
      • Recent Trends in Bank Performance Measures
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
  • Chapter 18. Financial Regulation
    • Preview
    • Asymmetric Information as a Rationale for Financial Regulation
      • Government Safety Net
      • Global: The Spread of Government Deposit Insurance Throughout the World: Is This a Good Thing?
    • Types of Financial Regulation
      • Restrictions on Asset Holdings
      • Capital Requirements
      • Prompt Corrective Action
      • Financial Supervision: Chartering and Examination
      • Global: Where Is the Basel Accord Heading in a Post–Global Financial Crisis World?
      • Assessment of Risk Management
      • Disclosure Requirements
      • Consumer Protection
      • Mini-Case: Mark-to-Market Accounting and the Global Financial Crisis
      • Restrictions on Competition
      • Mini-Case: The Global Financial Crisis and Consumer Protection Regulation
      • Macroprudential Versus Microprudential Supervision
      • E-Finance: Electronic Banking: New Challenges for Bank Regulation
      • Summary
      • Global: International Financial Regulation
    • The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
      • Dodd-Frank
    • Too-Big-to-Fail and Future Regulation
      • What Can Be Done About the Too-Big-to-Fail Problem?
      • Other Issues for Future Regulation
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Appendix
    • Chapter 18 Appendix: Banking Crises Throughout the World
  • Chapter 19. Banking Industry: Structure and Competition
    • Preview
    • Historical Development of the Banking System
      • Multiple Regulatory Agencies
    • Financial Innovation and the Growth of the Shadow Banking System
      • Responses to Changes in Demand Conditions: Interest Rate Volatility
      • Responses to Changes in Supply Conditions: Information Technology
      • E-Finance: Will Fintech Disrupt the Conventional Banking Sector?
      • E-Finance: Why Are Scandinavians So Far Ahead of Americans in Using Electronic Payments and Online B
      • E-Finance Sweden: The Leading Cashless Society
      • Securitization and the Shadow Banking System
      • Avoidance of Existing Regulations
      • Mini-Case: Bruce Bent and the Money Market Mutual Fund Panic of 2008
      • The Practicing Manager: Profiting from a New Financial Product: A Case Study of Treasury Strips
      • Financial Innovation and the Decline of Traditional Banking
    • Structure of the U.S. Banking Industry
      • Restrictions on Branching
      • Response to Branching Restrictions
    • Bank Consolidation and Nationwide Banking
      • E-Finance: Information Technology and Bank Consolidation
      • The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
      • What Will the Structure of the U.S. Banking Industry Look Like in the Future?
      • Are Bank Consolidation and Nationwide Banking Good Things?
    • Separation of the Banking and Other Financial Service Industries
      • Erosion of Glass-Steagall
      • The Gramm-Leach-Bliley Financial Services Modernization Act of 1999: Repeal of Glass-Steagall
      • Implications for Financial Consolidation
      • Mini-Case: The Global Financial Crisis and the Demise of Large, Free-Standing Investment Banks
      • Separation of Banking and Other Financial Services Industries Throughout the World
    • Thrift Industry
      • Savings and Loan Associations
      • Mutual Savings Banks
      • Credit Unions
    • International Banking
      • Eurodollar Market
      • Structure of U.S. Banking Overseas
      • Foreign Banks in the United States
    • Summary
    • Key Terms
    • Questions
  • Chapter 20. The Mutual Fund Industry
    • Preview
    • The Growth of Mutual Funds
      • The First Mutual Funds
    • Benefits of Mutual Funds
      • Ownership of Mutual Funds
    • Mutual Fund Structure
      • Open-Versus Closed-End Funds
      • Case: Calculating a Mutual Fund’s Net Asset Value
      • Organizational Structure
    • Investment Objective Classes
      • Equity Funds
      • Bond Funds
      • Hybrid Funds
      • Money Market Funds
      • Index Funds
    • Fee Structure of Investment Funds
    • Regulation of Mutual Funds
    • Hedge Funds
      • Mini-Case: The Long Term Capital Debacle
    • Conflicts of Interest in the Mutual Fund Industry
      • Sources of Conflicts of Interest
      • Mutual Fund Abuses
      • Conflicts of Interest: Many Mutual Funds Are Caught Ignoring Ethical Standards
      • Government Response to Abuses
      • Conflicts of Interest: SEC Survey Reports Mutual Fund Abuses Widespread
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercise
  • Chapter 21. Insurance Companies and Pension Funds
    • Preview
    • Insurance Companies
    • Fundamentals of Insurance
      • Adverse Selection and Moral Hazard in Insurance
      • Selling Insurance
      • Mini-Case: Insurance Agent: The Customer’s Ally
    • Growth and Organization of Insurance Companies
    • Types of Insurance
      • Life Insurance
      • Health Insurance
      • Mini-Case: Updates to the Affordable Care Act
      • Property and Casualty Insurance
      • Mini-Case: Will Liability Issues Be a Roadblock to Driverless Cars?
      • Insurance Regulation
      • The Practicing Manager: Insurance Management
      • Screening
      • Risk-Based Premium
      • Restrictive Provisions
      • Prevention of Fraud
      • Cancellation of Insurance
      • Deductibles
      • Coinsurance
      • Limits on the Amount of Insurance
      • Summary
      • Credit Default Swaps
      • Conflicts of Interest: The AIG Blowup
    • Pensions
      • Conflicts of Interest: The Subprime Financial Crisis and the Monoline Insurers
    • Types of Pensions
      • Defined-Benefit Pension Plans
      • Defined-Contribution Pension Plans
      • Private and Public Pension Plans
      • Mini-Case: Power to the Pensions
    • Regulation of Pension Plans
      • Employee Retirement Income Security Act
      • Individual Retirement Plans
    • The Future of Pension Funds
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
  • Chapter 22. Investment Banks, Security Brokers and Dealers, and Venture Capital Firms
    • Preview
    • Investment Banks
      • Background
      • Underwriting Stocks and Bonds
      • Equity Sales
      • Mergers and Acquisitions
      • Mini-Case: Twitter Uses Poison Pills to Drive Hard Bargain with Musk
    • Securities Brokers and Dealers
      • Brokerage Services
      • Mini-Case: Example of Using the Limit-Order Book
      • Securities Dealers
    • Regulation of Securities Firms
    • Relationship Between Securities Firms and Commercial Banks
    • Private Equity Investment
      • Venture Capital Firms
    • Private Equity Buyouts
      • Advantages to Private Equity Buyouts
      • Life Cycle of the Private Equity Buyout
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
• Part Seven: The Management of Financial Institutions
  • Chapter 23. Risk Management in Financial Institutions
    • Preview
    • Managing Credit Risk
      • Screening and Monitoring
      • Long-Term Customer Relationships
      • Loan Commitments
      • Collateral
      • Compensating Balances
      • Credit Rationing
    • Managing Interest-Rate Risk
      • Income Gap Analysis
      • Duration Gap Analysis
      • Example of a Nonbanking Financial Institution
      • Some Problems with Income Gap and Duration Gap Analyses
      • The Practicing Manager: Strategies for Managing Interest-Rate Risk
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercise
  • Chapter 24. Hedging with Financial Derivatives
    • Preview
    • Hedging
    • Forward Markets
      • Interest-Rate Forward Contracts
      • The Practicing Manager: Hedging Interest-Rate Risk with Forward Contracts
      • Pros and Cons of Forward Contracts
    • Financial Futures Markets
      • Financial Futures Contracts
      • Following the Financial News: Financial Futures
      • The Practicing Manager: Hedging with Financial Futures
      • Organization of Trading in Financial Futures Markets
      • Globalization of Financial Futures Markets
      • Explaining the Success of Futures Markets
      • Mini-Case: The Hunt Brothers and the Silver Crash
      • The Practicing Manager: Hedging Foreign Exchange Risk with Forward and Futures Contracts
    • Hedging Foreign Exchange Risk with Forward Contracts
    • Hedging Foreign Exchange Risk with Futures Contracts
    • Stock Index Futures
      • Stock Index Futures Contracts
      • Following the Financial News: Stock Index Futures
      • The Practicing Manager: Hedging with Stock Index Futures
    • Options
      • Option Contracts
      • Profits and Losses on Option and Futures Contracts
      • Factors Affecting the Prices of Option Premiums
      • Summary
      • The Practicing Manager: Hedging with Futures Options
    • Interest-Rate Swaps
      • Interest-Rate Swap Contracts
      • The Practicing Manager: Hedging with Interest-Rate Swaps
      • Advantages of Interest-Rate Swaps
      • Disadvantages of Interest-Rate Swaps
      • Financial Intermediaries in Interest-Rate Swaps
    • Credit Derivatives
      • Credit Options
      • Credit Swaps
      • Credit-Linked Notes
      • Case: Lessons from the Global Financial Crisis: When Are Financial Derivatives Likely to Be a Worldw
    • Summary
    • Key Terms
    • Questions
    • Quantitative Problems
    • Web Exercise
    • Web Appendix
    • Chapter 24 Appendix: More on Hedging with Financial Derivatives
• Additional Chapters
  • Chapter 25. Financial Crises in Emerging Market Economies
    • Preview
    • Dynamics of Financial Crises in Emerging Market Economies
      • Stage One: Initial Phase
      • Stage Two: Currency Crisis
      • Stage Three: Full-Fledged Financial Crisis
      • Case: Crisis in South Korea, 1997–1998
      • Financial Liberalization/Globalization Mismanaged
      • Perversion of the Financial Liberalization/Globalization Process: Chaebols and the South Korean Cris
      • Stock Market Decline and Failure of Firms Increase Uncertainty
      • Adverse Selection and Moral Hazard Problems Worsen and the Economy Contracts
      • Currency Crisis Ensues
      • Final Stage: Currency Crisis Triggers Full-Fledged Financial Crisis
      • Recovery Commences
      • Case: The Argentine Financial Crisis, 2001–2002
      • Severe Fiscal Imbalances
      • Adverse Selection and Moral Hazard Problems Worsen
      • Bank Panic Begins
      • Currency Crisis Ensues
      • Currency Crisis Triggers Full-Fledged Financial Crisis
      • Recovery Begins
    • Preventing Emerging Market Financial Crises
      • Beef Up Prudential Regulation and Supervision of Banks
      • Global: When an Advanced Economy Is Like an Emerging Market Economy: The Icelandic Financial Crisis
      • Encourage Disclosure and Market-Based Discipline
      • Limit Currency Mismatch
      • Sequence Financial Liberalization
    • Summary
    • Key Terms
    • Questions
  • Chapter 26. Savings Associations and Credit Unions
    • Preview
    • Mutual Savings Banks
    • Savings and Loan Associations
      • Mutual Savings Banks and Savings and Loans Compared
    • Savings and Loans in Trouble: The Thrift Crisis
      • Later Stages of the Crisis: Regulatory Forbearance
      • Competitive Equality in Banking Act of 1987
    • Political Economy of the Savings and Loan Crisis
      • Principal–Agent Problem for Regulators and Politicians
      • Case: Principal–Agent Problem in Action: Charles Keating and the Lincoln Savings and Loan Scandal
    • Savings and Loan Bailout: Financial Institutions Reform, Recovery, and Enforcement Act of 1989
    • The Savings and Loan Industry Today
      • Number of Institutions
      • S&L Size
      • S&L Assets
      • S&L Liabilities and Net Worth
      • Capital
      • Profitability and Health
      • The Future of the Savings and Loan Industry
    • Credit Unions
      • History and Organization
      • Sources of Funds
      • Uses of Funds
      • Advantages and Disadvantages of Credit Unions
      • The Future of Credit Unions
    • Summary
    • Key Terms
    • Questions
    • Exercise
  • Chapter 27. Finance Companies
    • Preview
    • History of Finance Companies
    • Purpose of Finance Companies
    • Risk in Finance Companies
    • Types of Finance Companies
      • Business (Commercial) Finance Companies
      • Consumer Finance Companies
      • Sales Finance Companies
    • Regulation of Finance Companies
    • Finance Company Balance Sheet
      • Assets
      • Liabilities
      • Income
      • Finance Company Growth
    • Summary
    • Key Terms
    • Questions
    • Exercise
• Glossary
• Index
  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • Y
  • Z
• Guide to Commonly Used Symbols

UM RAFBÆKUR Á HEIMKAUP.IS

Bókahillan þín er þitt svæði og þar eru bækurnar þínar geymdar. Þú kemst í bókahilluna þína hvar og hvenær sem er í tölvu eða snjalltæki. Einfalt og þægilegt!

Rafbók til eignar
Rafbók til eignar þarf að hlaða niður á þau tæki sem þú vilt nota innan eins árs frá því bókin er keypt.

Þú kemst í bækurnar hvar sem er
Þú getur nálgast allar raf(skóla)bækurnar þínar á einu augabragði, hvar og hvenær sem er í bókahillunni þinni. Engin taska, enginn kyndill og ekkert vesen (hvað þá yfirvigt).

Auðvelt að fletta og leita
Þú getur flakkað milli síðna og kafla eins og þér hentar best og farið beint í ákveðna kafla úr efnisyfirlitinu. Í leitinni finnur þú orð, kafla eða síður í einum smelli.

Glósur og yfirstrikanir
Þú getur auðkennt textabrot með mismunandi litum og skrifað glósur að vild í rafbókina. Þú getur jafnvel séð glósur og yfirstrikanir hjá bekkjarsystkinum og kennara ef þeir leyfa það. Allt á einum stað.

Hvað viltu sjá? / Þú ræður hvernig síðan lítur út
Þú lagar síðuna að þínum þörfum. Stækkaðu eða minnkaðu myndir og texta með multi-level zoom til að sjá síðuna eins og þér hentar best í þínu námi.



Fleiri góðir kostir
- Þú getur prentað síður úr bókinni (innan þeirra marka sem útgefandinn setur)
- Möguleiki á tengingu við annað stafrænt og gagnvirkt efni, svo sem myndbönd eða spurningar úr efninu
- Auðvelt að afrita og líma efni/texta fyrir t.d. heimaverkefni eða ritgerðir
- Styður tækni sem hjálpar nemendum með sjón- eða heyrnarskerðingu